Referrals, introductions and separate businesses

You are reading current version in effect from 25 November 2019

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You are reading current version in effect from 25 November 2019

Guidance

Regulated financial services activites

If you are a COLP or a nominated authorised signatory for a firm we regulate, you need to let us know whether or not your firm carries out financial activities for clients as part of your legal work.

Payment Protection Insurance claims

This warning notice is relevant to all those we regulate acting in claims for mis-sold payment protection insurance (PPI).

Risk factors in personal injury claims

This Warning Notice is relevant to solicitors and all regulated persons who take personal injury referrals from third parties, work closely with them or act on their instructions.

Referral fees LASPO and SRA Principles

This notice is for all practitioners who have referral arrangements for personal injury work.

Q&As on the ban of personal injury referral fees

The Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO) introduced in 2013 a ban on referral fees in personal injury actions.

Glossary terms

client

means the person for whom you act and, where the context permits, includes prospective and former clients

in the SRA Financial Services (Scope) Rules, in relation to any regulated financial services activities carried on by an authorised body for a trust or the estate of a deceased person (including a controlled trust), means the trustees or personal representatives in their capacity as such and not any person who is a beneficiary under the trust or interested in the estate

person

includes a body of persons (corporate or unincorporated)

fees

means your own charges or profit costs (including any VAT element)

introducer

means any person, business or organisation who or that introduces or refers clients to your business, or recommends your business to clients or otherwise puts you and clients in touch with each other

regulatory arrangements

has the meaning given to it by section 21 of the LSA

SRA

means the Solicitors Regulation Authority

referral fee

means a referral fee as defined within section 57(7) of the Legal Aid, Sentencing and Punishment of Offenders Act 2012

separate business

means, where you own, manage or are employed by an authorised body,

a separate business:

  1. which you own;
  2. which you are owned by;
  3. where you actively participate in the provision of its services, including where you have any direct control over the business or any indirect control over the business through another person, or
  4. which you are connected with,

and which is not an authorised body, an authorised non-SRA firm, or an overseas practice